Apparently, at some point the lycanthrope heard of a mystic ring belonging to the Daedra of the Hunt, Hircine. According to the legends surrounding the artifact it will allow a werewolf wearing it to not only better control themself, but also have complete control of their transformations. This includes averting the nighttime transformation under the full moon that is otherwise not optional.
Instead of this blessing, however, Sindig has instead recieved a curse that causes his lycanthropic transformations to be uncontrolled and at least partly random. More than tired of this issue, Sindig wishes to return the ring in the hopes that giving it back to the Daedric Lord of the Hunt will prompt a lifting of the curse. This, of course, means getting the Daedra's attention to begin with- not the easiest of things for most people. Thankfully, you are Dovahkiin and should be able to follow the suggestion Sindig gives you.
According to the imprisoned man, there is a legendary beast in the woods near Falkreath (explaining his presence here in particular when he was already aware his transformation was out of control) that is supposedly of great import to Hircine. According to the stories of the animal, Hircine will appear to any skilled enough to hunt and slay it, which will hopefully give a chance to open conversation with the Lord of the Hunt. This beast takes the form of a white stag, and while it does move around frequently, it always stays in the vicinity of Falkreath.
On your acceptance of the quest, Sindig gives you the ring- which not only is cursed, but automatically becomes equipped. This ring bears a great threat for werewolves- if you are one and wearing it, then each minute that you are outside of a town or dungeon you have a 1/10 chance of shifting to wolf form involuntarily. This can wreak some serious havoc on any attempts to talk to people, so you should probably get rid of the ring quickly. If you aren't a lycanthrope, thankfully, the ring has no actual effect and you can be much more calm about the whole matter.
Once you have the ring and the information, Sindig proves to be perhaps a bit less remorseful than he originally indicated: rather than waiting here for your triumphant return, he shifts into beast form and climbs the wall of his oubilette, escaping completely. While the guards will comment on the fact that you talked to him and then he escaped, they thankfully don't actually do anything about it other than comment and look at you a bit askance (and will, in fact, forget you were involved at all before long).